What’s Affecting Oil Prices This Week? (May 2, 2022)

Stratas Advisors explores the possibility of a price breakdown in its latest oil price forecast.

John E. Paisie, Stratas Advisors
What’s Affecting Oil Prices This Week? (May 2, 2022)

Given the negative news about global economy and the pessimism about future economic growth, it is possible that the price of Brent crude will break below the support level of $98 and then continue to fall below $90, according to Stratas Advisors. (Source: Shutterstock.com)

The price of Brent crude ended the week at $107.22 after closing the previous week at $106.65. The price of WTI ended the week at $104.69 after closing the previous week at $102.07.

Since Feb. 25, the price of Brent crude continues to go through cycles of lower highs before the price of Brent crude retreats to the lower support level, and it appears that a similar pattern has happened for the fourth such cycle. Given the negative news about global economy and the pessimism about future economic growth, it is possible that the price of Brent crude will break below the support level of $98 and then continue to fall below $90. The likelihood of this occurring continues to grow the longer there is no actual fundamental change in the supply picture for crude oil.

Furthermore, there continue to be downside risks associated with oil demand because of the possibility of an economic slowdown

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